Funds “appetize” food and drinks – Their role in business deals – 2024-08-24 04:22:53

Ten business agreements from the beginning of 2024 until today “count” the domestic food and beverage sector, with the movements of the Greek ecosystem of private equity funds setting the tone for the developments.

In fact – and despite the uncertainty due mainly to geopolitical developments – executives of consulting companies report to “Vima” that in the coming months a new revival of dealmaking is expected with medium-sized companies as protagonists, but without excluding mega deals, i.e. worth over 100 million euros.

The critical parameter of food sufficiency and security, which promises high returns in the long term, export prospects and the dynamics of the tourism market are a barometer for upcoming acquisitions in the food and beverage sector, the same sources point out.

It is indicative that the last three deals in the food sector, i.e. the acquisition by Desserta Hellas, a subsidiary of the Austrian group Berglandmilch, of the Minerva cheese factory in Episkopiko in Ioannina, the triple takeover of the companies Latzimas, Elaia Sitias – LaSitia and Olympian Green International from the SMERemediumCap investment fund of Nikos Karamouzis and then the creation of a joint company with Inspiring Earth led by the experienced manager Konstantinos Antonopoulos and the acquisition of 30% of Eurocatering, leader in the category of fresh packaged salads, by Latsco Family Office (interests of Marianna Latsis), directly or indirectly it was the case of the funds.

Avramar’s rescue

And it goes on and on. The funds also have the first say in pending deals, such as the sale/rescue of the Greek division of the Avramar group, the “big patient” of fish farms.

Already in the second phase of the tender process (submission of binding offers), three potential investors have passed from the six that were initially interested: the Spanish fund Atitlan, the Arab group Aqua Bridge and the fund Diorasis, the main shareholder of Philosofish, the second largest Greek company fish farming. However, it is not certain that all three candidates will proceed to submit binding offers.

In any case, the aim of the banks is to have the process completed by September, however it is still not entirely clear whether the original plan will be followed, i.e. the “saving” of Avramar as a whole, or the company will finally be “broken” into pieces .

However, at the moment the company, with leading shares in the fish farming industry, is on the edge of its seat in terms of the required liquidity, as the (delayed) interim financing of 20 million euros has almost been used up.

Exits from Minerva and EZA

The fund Diorama Investments SICAR SA (Diorama I), the interests of the former president of SEB Dimitris Daskalopoulos, as “To Vima” had revealed, has launched an exit from Minerva and already the deal between the “oldest olive oil company in the country” – which now produces minimal oil – and Desserta’s acquisition of the former’s feta factory in Ioannina by the latter shows that it will not be long before it is completed.

It is recalled that Diorama I together with the private equity funds EOS Capital Partners of Apostolos Tamvakakis and Elikonos Capital (Petros Katsoulas, Pantelis Papageorgiou, Takis Solomos, Dimitris Vidakis) acquired Minerva in September 2019 investing approximately 45 million euros. It is noted that Diorama I owns 68% of the company’s shares, while EOS and Elikonos each own 16%.

Approximately the same tactic will be followed in the case of the EZA brewery (Hellenic Brewery Atalanti), where Diorama I also has a majority stake.

At the same time, Diorama 2 has started investing, having, among other things, bought a majority stake in the food import company Leader.

Hellenic Salts

By the end of 2024, the goal of the Superfund is to have “locked in” the investor who will take over as the majority shareholder the fate of Hellinikes Alykes SA in order to maximize its potential. Already, and while the process has not officially started, as the relevant tender will go on the “air” in the last quarter of 2024, information indicates that at least four “players”, mainly companies or investors, active in the Greek and in the Cypriot market.

At the moment, the mapping of the shareholders and the evaluation of the business plan are underway, while the necessary consultations are being held to determine the profile of the appropriate strategic investor. In any case, the strategic investor will acquire a percentage lower than 60%, with the Superfund retaining a percentage of the share capital.

It is recalled that last year the Superfund regained the 24.81% share held by Kalamarakis SA – Kalas in the Hellenic Salts. After the aforementioned acquisition, the Superfund now owns 80% of the share capital, while 20% remains in the municipalities where the company’s 7 salt pans operate, with the highest percentage held by the Municipality of Messolonghi.

Tambakaki’s moves

Developments in the next period are also expected from the side of Apostolos Tamvakakis, Managing Partner of EOS Capital Partners, who is launching at least three new investments with the vehicle of the second fund, including one in the food industry.

It should be noted that the new fund of Apostolos Tamvakakis and his team can “hit” companies with a turnover of up to 100 million euros and 500 employees. On average it seeks to invest 25 million euros per company by acquiring a majority stake, while the maximum investment can reach up to 37 million euros.

Tsantalis and Kurtakis

Despite the efforts to clean up Tsantalis and to sell it to Hellenic Wineries, the company of Ilias and Thomas Georgiadis that has Boutaris and the natural mineral water Ioli in its portfolio, the historic winery ultimately failed to be saved, filing a bankruptcy petition at the Thessaloniki Court of First Instance, which will be discussed on October 11.

At the same time, reorganizations at the ownership level are “heard” for the Hellenic Wine Cellars company, better known as the Kourtaki Winery. The century-old company, which once had hegemonic shares in the industry, after the death of Vassilis Kourtakis three years ago, is in decline, with Aegio Winery and Distillery (Cavino) taking the lead in terms of sales figures.